E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 16, 2014 Forecast

December E-mini NASDAQ-100 Index futures broke sharply on Wednesday, but stayed inside a major retracement zone after reaching a low at 3691.25.

The main range is 3409.75 to 4118.75. The retracement zone formed by this range is 3764.25 to 3680.50. Wednesday’s low stopped at 3691.25, slightly above the major Fibonacci level at 3680.50.

If yesterday’s low holds as support then a minor range will form between 4118.75 and 3691.25. This makes its retracement zone at 3905.00 to 3955.50 the next likely upside target.

Support today is yesterday’s low at 3691.25, the major Fibonacci level at 3680.50 and a long-term uptrending angle at 3669.75. If this angle is taken out with conviction then look for an acceleration to the downside with the next angle at 3539.75 the next likely downside target. This is the last support angle before the April 15 bottom at 3409.75.

A breakout over the 50% level at 3764.25 could trigger a rally into a steep downtrending angle at 3814.75. The daily chart opens up to the upside if this angle is taken out with conviction with 3905.00 the next possible target.

Trader reaction to 3764.25 and 3680.50 will set the tone of the market today. Watch the price action and order flow. There may be opportunities selling resistance and buying support, or on breakout moves. It all depends on the volume and order flow at these key price levels.